UPDATE ON SOLSTICE PRODUCTION!

The Pontiac Solstice and Elle MacPherson at TriBeca Film Festival last month

By Lori Queen, GM Vehicle Line Executive - Small Cars

Let me start by translating for you what my title means: I run the team that is responsible for the Solstice program. I work for Bob Lutz . . . and the buck does indeed stop here!
The reason for my post is to answer a few questions, namely, are we listening? Of course we are . . . I know I am.

My team and I have seen the emails and posts from Solstice fans. We’re pleased there’s so much passion behind the launch of this new Pontiac – we share your enthusiasm. Let me respond to some of the concerns I’ve read:

First, we’ve said that production begins this summer –- and it will. We’re currently building pre-production models at our assembly plant in Wilmington, Delaware. The commitment is to deliver all “First 1,000” cars by the end of October. Our goal is for delivery to begin by late summer, perhaps sooner. However, when Pontiac announced its early order program on the Apprentice we did so to better gauge interest. We were blown away that the first 1,000 vehicles sold out in 41 minutes. We now have more than 8,000 orders. The roadster segment is very small –- about 100,000 units a year. This incredible interest means that once consumers have their cars, we’ll have gone from zero to nearly 10 percent of the roadster market in no time.

We know our new owners will want their vehicles to be dynamically sound, with superb road manners to match their good looks. Every GM vehicle launch is subject to many stringent quality tests – both at the plant and in the vehicle itself. Some of the rumors we’ve seen relate to these tests. The testing and slow “ramp-up” –- how quickly we go from building a handful of cars a day to full production -– ensures that we’re selling the highest quality vehicles. It’s no accident that last week J.D. Power reported that GM led the industry in manufacturing quality for the fourth straight year. Based on this track record, we believe that future Solstice owners want us to take this kind of care with their vehicles, too.

These extensive quality checks are why some have said they’ve noticed a few Solstices on the road. They weren’t seeing things –- we do have cars being driven by GM engineers across the country. We rigorously drive and test these early vehicles to confirm that they meet our quality expectations.

Will the first 1,000 cars really be the first 1,000? Absolutely. We said we would deliver the first 1,000 retail cars to these lucky few, and that’s the plan. These engineering vehicles will never make it to dealers. Some of these vehicles, after we've driven them hard, may be brought up to production standards and sold at auction, similar to other vehicle programs, but it would be well after the first 1,000 cars are delivered. This is the way vehicle programs work. We shake down the cars so ourcustomers don’t have to.

I know Pontiac marketing folks have plans to continue communicating with their new buyers throughout the summer and fall. And, if you’re one of the First 1,000, you’ve probably heard from them by now.

Keep your comments coming. The team likes to know what you’re thinking. Meanwhile, we’ll keep working to bring the best-looking and highest-quality roadster to market –- a car we’ll be proud to sell and our customers will be thrilled to own.

GM NAMED TOPS IN QUALITY!

By Bob Lutz, GM Vice Chairman

"Several new GM products took top honors in their segments. Pontiac's G6 medium sedan won out over Toyota and Honda entries, as did the Buick Rainier medium sport utility vehicle (SUV)."

Now that is music to my ears, and it wasn't written by a journalist or some furtive GM blogger. No, that is a direct quote from news released today by Strategic Vision of San Diego and is in reference to their 2005 Total Quality Study. Strategic Vision is an up and coming force in this industry because they offer a unique perspective and a different voice; they don't look exclusively at problems. They look at total quality and the total ownership experience by issuing owners a comprehensive 8-page survey after three months of ownership.

This year, GM had the top rated vehicle in six of the 20 categories, more than any other manufacturer. The 2005 G6, Corvette, Rainier, Escalade, H2, and Sierra 2500/3500 all topped their respective categories.

Overall, I'm fairly pleased with these results, particularly in the case of the oft-maligned G6, which by the way, scored extremely well, especially on the emotional side. As Strategic Vision President, Dr. Darrel Edwards says, "As the number of new vehicles and segments continues to grow, understanding the emotional needs of buyers in each segment will be critical."

Understanding the emotional needs of buyers is something we're working really hard to do. Our increased efforts to converse directly with car buyers in forums like this blog are indicative of this. So, like I've said over and over in my posts, yes, we're listening.

As the study also points out, we do have work to do in some areas. The scores of some of our vehicles have suffered as their lifecycles draw to a close. We will be replacing those vehicles this year and next. Stay tuned for more.

PONTIAC TO BUILD SOLSTICE HARDTOP!

Pontiac Solstice Hardtop

By Jason Stein and Robert SherefkinAutomotive News / May 23, 2005

DETROIT -- General Motors will offer a removable hardtop on the Pontiac Solstice roadster in the first quarter of 2007, supplier and GM sources say. The variant is part of GM's attempt to race the Solstice in Sports Car Club of America events. To race there, an automaker must have a production version of a hardtop vehicle.

During a panel discussion at the SAE World Congress in Detroit last month, Mark Reuss, executive director of GM's Performance Division, showed a picture of a car labeled the 2007 Solstice GT. The photo showed the car in coupe form with a sloping, fixed roof.

Pontiac spokesman Jim Hopson says the vehicle is still under study. "We're not ruling out a lot of possibilities," Hopson says. "We're going to explore some of those." GM insiders say Pontiac would like to add a hardtop to its lineup to stoke enthusiasm for what already appears to be a popular vehicle. As of Monday, May 16, Pontiac had 8,177 orders for the Solstice, GM says. Pontiac says it will start building the vehicle this summer.

Reuss said he envisions a hardtop Solstice competing for the title in the Stock B-class competition against the Mazda Miata or in the Grand-Am Cup ST-class racing circuit against the BMW 330 and Mazda RX-8. The Solstice is built at GM's Wilmington, Del., plant on the Kappa rear-wheel-drive architecture.

NOW YOU CAN MAKE YOUR AUTOCITY SERVICE RESERVATION ON-LINE!

If you just bought a vehicle from Autocity of Pinecrest, or if you service your current vehicle at our dealership, we have something revolutionary to communicate to you: 1) You can make an on-line reservation to have your car serviced at Autocity of Pinecrest; 2) You can also check on-line to see whether the work on your vehicle is completed; 3) You can see the service history on your vehicle from the comfort of your home PC. But first, you must register in our web site. So, if you have not done it yet, go to http://www.autocity4u.com and click on the "Service" tab. Then click on "Owners' Circle". Once you register you will be able to access all the benefits above. It is a unique service that only Autocity of Pinecrest offers you! Take advantage of it!

AUTOCITY CUSTOMER GALLERY

Kevin & Kaeann Hammel---'05 Sierra

Wilmer Bolivar---'05 Pontiac Vibe

Phillip Gardner---'05 Pontiac G6 

Pedro Hernandez---'05 Buick Lacrosse 

Miguel Mozo---'05 GMC 3500 Sierra 

Liliana Angel---'04 GMC Envoy XL 

Lilian Villareal---'05 Pontiac Vibe 

Lideary Romero---'04 GMC Envoy XL 

Judie & Mike Brown---'05 Buick Lesabre 

Alina A. Ripoll---'05 Pontiac Sunfire

LEASING ON THE INCREASE!

From DealersEdge.com

The car industry is aggressively returning to a strategy that has burned it in the past: pushing people to lease instead of buy. After booming in the late 1990s when leases accounted for 25% of all new-car transactions, leases fell off significantly after auto makers miscalculated by offering programs that were too generous. In recent years, leases have fallen to as little as 12% of transactions.

Now, as rising interest rates make car financing costlier again, carmakers are working overtime to push their leasing numbers back up. This year marks the first time in at least four years that carmakers spent more money on leasing incentives in the first quarter than on traditional financing deals, according to CNW Marketing Research Inc.

Last month, General Motors began a pilot program, "Freedom Lease," with three car models, in which customers in markets including Boston, Atlanta and all of California can return their car in the first 12,000 miles "for any reason," according to dealer documents, and break the lease with no penalty except for loss of the down payment, which is a minimum of $1,500. Traditionally, breaking a lease means either having to buy the car outright or getting hit with thousands of dollars in fees.

Other manufacturers are expanding programs that let customers get out of a lease early if they buy or lease another vehicle. DaimlerChrysler has extended until May 31 its program, called Chrysler Financial Pull Ahead, which began in November and allows some lease customers with 12 or fewer payments remaining to waive four payments if they buy or lease another Chrysler, Jeep or Dodge vehicle. Other manufacturers with similar programs running include GM, Toyota Motor Corp. and Mercedes-Benz Credit, which launched its version in February.

Already, leases' share is up as customers take advantage of the improving deals. Ford says that at its Ford Division, about 12% of customers currently lease vehicles, higher than its 10% rate a year ago. BMW also reports a strong increase in lease rates in the U.S. in the past couple of months.

GM WILL CONSOLIDATE MODELS!

From DealersEdge.com

General Motors has announced that only two of its vehicle lines - Chevy and Cadillac - will offer a full array of models, while the remaining brands will have more limited product lines, according to a report in the Detroit News. The stated goal is to rejuvenate sales, reduce marketing and production costs, and to build brand identity.

The move is a dramatic change from GM's long-held philosophy that every brand should offer a full array of cars, trucks and minivans, noted Mark LaNeve, GM North America vice president of vehicle sales, service and marketing.

Chevrolet and Cadillac will become "bookend" brands, with each offering a broad product lineup. In between, Buick, Pontiac, GMC, Saturn, Hummer and Saab will exist as "focus" brands with more limited portfolios.

That means, for example, GM could eliminate either the Buick Terraza or Pontiac Montana SV6 minivan -- which are similar to other GM minivans -- to concentrate on the brands' bread-and-butter vehicles.

A key part of the strategy has been the ongoing transformation of Pontiac, Buick and GMC into a single sales channel where all three brands are sold at the same dealership. GM says the three brands complement each other and give customers myriad options.
About half of the GM dealers selling the three brands already have reconfigured their stores to sell all three, Mr. LaNeve said.

The effect, said David Cole, chairman of the Center for Automotive Research, is downsizing without eliminating brands as some analysts have predicted.

MORE GOOD NEWS FOR GM!

From a Tuesday editorial in the Detroit News: General Motors' insistence that its recovery will come because of its products got a much-needed boost Monday when the company's brands won more top honors than any other automaker in a national survey.

Even more promising about the recognition is that the survey gauged the emotions of new car and truck owners about their buying experience and the product itself as well as its performance. A positive emotional experience, the survey said, builds brand loyalty. The news couldn't come at a better time for GM, which had a first-quarter loss of $1.1 billion and is fighting to remain the world's No. 1 automaker.

Six GM brands won top awards in the survey, followed by Nissan Motor Co., with five. Ford Motor Co. was recognized in three categories (Focus, Five Hundred and Mustang) and DaimlerChrysler won one award for the PT Cruiser.

Perhaps the best news for GM is the recognition of the Pontiac G6 as the outright winner in the midsize car category. It was the only new GM brand to win.

Buyers also praised the Chevrolet Corvette as the best small specialty car priced more than $25,000; the Buick Rainier as the best midsized sport utility vehicle; the Hummer H2 and Cadillac Escalade tied with Range Rover as the best luxury SUVs; and the GMC Sierra 2500/3500 won as best heavy duty pickup.

More than 40,000 people who bought 2005 model cars and trucks in October and November were surveyed by Strategic Vision Inc., a San Diego market research firm, for its 2005 Total Quality Index report. This is the 10th year of the survey.

GM should ride this news for what it's worth: It's confirmation that consumers still believe in the company and some of its products and that the best way to build loyalty is to produce products that don't rest on their laurels.

J.D. POWER ON GM'S QUALITY PERFORMANCE - GREAT NEWS FOR GM DEALERS

J.D. POWER ON GM'S QUALITY PERFORMANCE . . . "The 2005 IQS results
contain some genuinely good news for General Motors. The improvements of
the quality of several models and at their North American plants are both
very positive signs."

FIVE GM MODELS NAMED SEGMENT LEADERS IN IQS STUDY . . . Today J.D. Power
and Associates released their 2005 Initial Quality Study (IQS), widely
considered to be the industry benchmark for new vehicle quality. While
GM's overall score did not show significant improvement over last year,
GM and its assembly plants had many significant "wins" in the study. Like
last year, GM had 13 vehicles that placed in the top three of their
segment. This includes six GM models that were rated highest in their
segment, up from three that placed at the top of their segment in last
year's study. These are: Buick's Century (Premium Midsize) and LeSabre
(Full-Size Car), Chevy's Malibu/Malibu Maxx (Entry Midsize) and Suburban
(Full-Size SUV), and the GMC Sierra HD (Heavy Duty Full-Size Pickup).
This marks GM's best performance to date in terms of segment leadership.

Note: J.D. Power does not provide an actual award for the Full-Size Van
category due to only two competitors in this segment, but the Chevy
Express was ranked highest in its segment.

GM MODELS TAKING SECOND & THIRD PLACE . . . Five GM models ranked second
in their segment: Chevy Impala (Premium Midsize), Pontiac Grand Prix (in
a tie with Impala), Cadillac Escalade EXT (Full-size Pickup Light Duty),
Chevy Silverado HD (Full-Size Pickup) and Chevy Tahoe (Full-Size SUV).
Two models came in third: Cadillac DeVille (Mid Luxury Car) and CTS
(Entry Luxury Car).

FINDINGS CONSISTENT WITH STRATEGIC VISION TOTAL QUALITY STUDY . . . The
results of the IQS are consistent with the results of Strategic Vision's
recently released Total Quality Study. Six GM vehicles got top ratings in
five of the survey's 20 vehicle categories, the highest number of any
full-line manufacturer. The Pontiac G6 was the top mid-size car, while
the Buick Rainier was the top mid-size sport utility vehicle and the GMC
Sierra was the top heavy-duty pickup. The Cadillac Escalade and the
HUMMER H2 tied with Land Rover's Range Rover in the luxury SUV category,
while the Chevrolet Corvette was tops among luxury specialty cars.

GM DOMINATES PREMIUM MIDSIZE CAR SEGMENT . . . In the very competitive
Midsize Car segment, GM demonstrated its quality leadership in the IQS.
GM dominated the Premium Midsize Car segment, with Buick Century, Pontiac
Grand Prix, Chevy Impala and Buick LaCrosse taking the top four spots ?
all ahead of the Toyota Camry and Honda Accord. Overall, Buick Century
was the No. 1 vehicle built in North America and the Buick LaCrosse was
the highest-rated all-new redesigned launch vehicle.

WINNING ASSEMBLY PLANTS . . . GM swept the top three North/South America
plant awards, up from two award wins last year. Oshawa 2, which makes the
Buick Century, Buick LaCrosse and Pontiac Grand Prix won the Gold award
for top assembly plant in North/South America. Oshawa 1, which makes the
Chevy Impala and Chevy Monte Carlo, won the Silver award for top assembly
plant in North/South America. And Hamtramck, which built the Buick
LeSabre, Cadillac DeVille and Pontiac Bonneville during the survey period
(and is gearing up to build the Buick Lucerne and Cadillac DTS) won the
Bronze. GM has been recognized for having the top two assembly plants in
North America for four consecutive years.

HOW GM VEHICLES COMPARE TO OTHER BRANDS . . . Buick and Cadillac are
among the top five brands, just behind Lexus, Jaguar and BMW. And four GM
brands are above industry average: Buick, Cadillac, HUMMER and GMC.

POWERTRAIN PERFORMANCE . . . While J.D. Power and Associates doesn't
report on GM Powertrain performance publicly, our own calculations, based
on data from J.D. Power, shows that GM Powertrain improved 4 percent,
passing Toyota for the first time. GM Powertrain is now in second place,
with Honda setting the new benchmark in powertrain performance. In other
findings, GM Powertrain became the industry leader in automatic
transmissions, improving 25 percent year-over-year.

OTHER KEY FINDINGS . . . Following are some other significant wins for
GM:

HUMMER was among the top 10 brands and also was the "most improved"
brand, with a 36 percent improvement. This is good news for the HUMMER
H3, which began shipping to dealers this week.
The GMC Envoy had significant year-over-year improvement.
The Cadillac CTS finished third in the entry Luxury Car segment, ahead
of the Chrysler 300 and BMW 3 Series.

AUTOCITY CUSTOMER GALLERY

Rafael Araya---'04 Nissan Maxima

Antonio Otego---'05 GMC Sierra 

Idania Izquierdo---'05 GMC Yukon 

Allen Pope---'05 GMC Sierra 3500 

Antonio Otero---'04 GMC Envoy XUV 

AUTOCITY CUSTOMER GALLERY

The Hegar Family---'05 Pontiac G6

The Vidal Family----'05 GMC Envoy 

Sadiel Suarez---'04 GMC Yukon 

Michelle Somberg---'05 Buick Lacrosse 

Gustavo Bueno and family---'04 Chevy Astro Van 

Asela Perez---'04 GMC Envoy 

Antonio Garcia---'05 GMC Sierra 

GM RANKS AMONG BEST IN QUALITY!

STRATEGIC VISION RELEASES QUALITY SURVEY RESULTS . . . General Motors Corp.
and Nissan Motor Co. and were the top performers in a new survey of vehicle
quality, with satisfied owners praising power and styling, Associated Press
reported today. Strategic Vision's tenth annual Total Quality Study, which
was released today, is based on a survey of more than 40,000 owners of new
2005 model year vehicles in the October-November 2004 time period. The
survey asked owners about their emotional response to vehicles, as well as
any problems they have experienced. Six GM vehicles got top ratings in the
survey's 20 vehicle categories, the highest number of any full-line
corporation. The Pontiac G6 was the top mid-size car, while the Buick
Rainier was the top mid-size sport utility vehicle and the GMC Sierra was
the top heavy-duty pickup. The Cadillac Escalade and the HUMMER H2 tied
with Land Rover's Range Rover in the luxury SUV category, while the
Chevrolet Corvette was tops among luxury specialty cars. Results like these
are welcome news for GM as it works to achieve industry leadership in all
three aspects of quality: initial quality, long-term quality and perceived
quality.

ABOUT THE G6 . . . "Initial buyers of the Pontiac G6 rated highest it
highest in the segment, above Camry and Accord," the study found. "The G6
did well in the areas of styling, power (all G6's in the sample were
6-cylinder models) and dealership. On the emotional side, G6 excels in
the esteem (fun and exciting) and freedom (power and individuality). In
many respects, G6 delivers to those target buyers who seek performance
and styling that makes them look good when driving. Psychographically
these folks differ from the typical Camry or Accord buyer."

GAS PRICES CONTINUE DOWNWARD TREND!

By Dale JewettAutomotive News / May 13, 2005

DETROIT -- Gasoline prices continued inching downward over the past three days. Larger drops could be around the corner as the price of a barrel of crude oil for future delivery skidded below $48 on Friday morning. On Tuesday, the price stood at more than $52 a barrel.

The average price of a gallon of unleaded gasoline was $2.18 on Friday, according to AAA, based in Hawthorne, Fla. That was where the price stood earlier in the week, but down 9 cents from a month earlier. Drivers with a diesel engine under the hood were paying an average of $2.31 a gallon, down 1 cent from earlier in the week and down 7 cents from a month earlier.

AAA monitors credit-card transactions at 60,000 self-serve fuel stations nationwide. It posts its findings at www.fuelgaugereport.com. Volunteers who report to GasPriceWatch.com said that the most expensive gasoline in the nation was found in Bridgeport, Calif., at $3.19 a gallon. A cheap fill up could be found in Catlettsburg, Ky., where a gallon of unleaded was priced at $1.77.

ENRIQUE SANTOS & JOE FERRERO DO THEIR THING AT GRAND OPENING OF NAVARRO'S!

Enrique Santos and Joe Ferrero took their # 1-rated morning radio show, El Vacilon de la Mañana, on the road. The occasion was the grand opening of Navarro Pharmacy Discount on Bird Road and 144th Ave. They entertained the large audience with their now-famous impressions of Elba, Chimichurre, Goldstein, among many others. This talented duo has taken El Zol 95 to the top as the #1-rated radio station in Miami. During the live broadcast they promoted the Pontiac G6 giveaway which will take place on June 18th in our Pinecrest showroom.